To make purchase online, to carry out different important transactions online for many modern people – favourite and habitual occupation. We suggest to find out what is electronic commerce and whether there are risks in electronic commerce.
What is electronic commerce?
Dictionaries say that electronic commerce is the such sphere of economy including financial and trade transactions which implementation happens through computer networks. To given a type of commerce it is accepted to carry electronic:
- exchanges of information;
- capital flow;
- types of trade;
- money;
- marketing;
- bankings;
- insurance services.
What is electronic commerce on the Internet?
As electronic commerce on the Internet it is accepted to understand as such term not only creation of business, creation of shops in networks, and and various calculations, purchases and earnings. For many modern people such type of commerce became a usual thing without which it is difficult to present life. However there are among us and those who still doubt and do not trust the Internet and everything that is connected with it.
Merits and demerits of electronic commerce
Has this appearance of commerce both advantages, and shortcomings. Among the first:
- An opportunity to reach the global market. Here requirements not only national, and and even the international market are served. The prospects of electronic commerce huge as business is not limited to a geographical framework. By means of this commerce even the small enterprises are capable to get access to the world market.
- Unique opportunity to the client to choose not really expensive and at the same time quality goods. There is such opportunity to consumers easily to investigate the interesting product, to learn about the manufacturer. Online shopping is always very quickly and conveniently. Besides, there is such opportunity to get acquainted with responses of those who already bought goods or used service.
- For the companies and firms this type of commerce many times reduces the expenses connected with marketing, customer service, storage and information processing, promotes better customer service. There is such opportunity to process and collect information on behavior of buyers.
Among shortcomings of electronic commerce:
- Not all people use the Internet for carrying out financial transactions because of the shortage of knowledge or mistrust. So, some are afraid to disclose personal information.
- Will not be suitable for trade of quickly spoiling goods. People prefer to buy food traditional in the ways, than to use electronic commerce.
Pluses of electronic commerce
Electronic commerce for many modern businessmen became an integral part of life. In it there is nothing surprising, advantages of electronic commerce are obvious:
- Possibilities of geographical coverage. Having opened shop in the city the businessman will have much less buyers, than in online store.
- Efficiency and convenience of purchases online. For many modern people of online purchase became something habitual. To order something, without leaving the house it is pleasant both to adults, and children.
- Business economy online. On opening of online store less financial investments, than on opening of usual shop in the city will be required.
Minuses of electronic commerce
Commerce of this type has also minuses. Allocate such shortcomings of electronic commerce:
- Mistrust of buyers. Though for many online shopping became ordinary business, nevertheless there are those who do not trust sellers on the Internet and prefer to buy in offline shops and supermarkets. Especially it concerns people of the senior generation.
- Not for all spheres of business is suitable. So, electronic commerce will not be suitable for those businessmen who are engaged in trade of food.
Types of electronic commerce
Allocate such types of electronic commerce:
- Electronic commerce of B2B, or business and business – one of the most perspective and quickly developing directions. The principle consists in trade of one enterprise with another.
- Scheme B2C, or business consumer. Here the company can trade directly with clients where it is about retail selling of goods.
- Scheme C2C, or consumer consumer. Transactions between consumers where any of them is not a businessman are provided. Often commerce happens on the websites of different online auctions which every day become more and more popular.
Payment service providers of electronic commerce
Allocate such systems of electronic commerce:
- Cash payments – traditional retail trade, payment when receiving the goods ordered in online store.
- Bank transfers are calculations between legal entities.
- The translations by means of the plastic card – are applied in retail chain stores, in Internet commerce.
- The translations by means of smart cards – are used in Internet commerce and retail chain stores.
- Electronic money – payment on the Internet, in retail network or by means of the pocket computer.
Electronic commerce - how to earn?
In the modern world, electronic commerce as a business form quite often is considered. We offer several ways of earnings in network:
- Opening of online store.
- Day stock market game.
- Game on FOREX.
- Polls online.
- Maintaining own blog.
- Sale of information product (videos, e-books).
Electronic commerce - the interesting facts
There are many interesting facts relating to such activity as electronic business and electronic commerce:
- Often Americans – more than 80% make purchase online.
- Free shipping of goods in 96% percent of cases pushes the person to make purchase.
- People add 20-30% of goods to cart, but do not make out the order.
- The most fast-growing market of commerce in India.
- 46% of users get acquainted with responses before buying goods.
- More often on the Internet the Americans buy clothes and accessories.
Electronic commerce - books
To learn everything about bases of electronic commerce and to ensure safety of electronic commerce important much to read. Such books will help to do business on the Internet:
- A workbook on drawing up the business plan for commercial online project Pavel Berestnev. It is told about what it is necessary to pay attention at business planning to how to set the purposes and tasks.
- Secrets of conversion of the commercial website Ivin Chia. It is about work, navigation and subtleties of the commercial website.
- Maximum monetization of e-books Michael Rassmyyussen. The book how it is possible to sell electronic literature.